Are you using your Social Security number on claims, superbills, and other practice documents? You might want to rethink this.  

Using your Social Security Number on practice forms carries a risk of identity theft.  There is also the risk of financial fraud if the form is lost or stolen or the database where your SSN is filed is hacked. 

So how can you avoid using your Social Security Number?

The Lowdown on Tax IDs 

There are two main types of tax ID numbers: Social Security Numbers and Employer ID Numbers (EIN). There are many reasons why clinicians might want to use an EIN instead of their SSN on all practice forms where a tax id number is required.

You may think “I’m not eligible for an EIN – I’m not an employer.”  But you are!  Even if your business only has one employee (you), you can get an EIN.

6 Good Reasons to Get an EIN

1. Using an EIN instead of an SSN on forms, tax documents, or public registries helps prevent personal identity theft.  If you use your SSN, criminals (or angry clients, or clients with financial issues) could use this number to open new credit cards, take out loans, or rent property in your name.  
2. Superbills and insurance claim forms require a tax ID. Using an EIN prevents insurance companies and clearinghouses from seeing your SSN, and protects it in case of a health plan data breach.   
3. If you transition from an individual practice to a group practice, or register as an LLC, you must get an EIN to apply for an organization-level Type 2 National Provider Identifier (NPI).
4. Banks may require an EIN to open a dedicated business checking account, which allows you to separate business funds from your personal finances.  
5. You need an EIN if you plan to hire administrative staff, bring on W-2 employees, or contract out work to others (1099 contractors).
6. Many commercial insurance plans and Medicaid networks require an EIN during the CAQH profiling and credentialing process.

It’s Easy To Get Your EIN

Unlike most things that come from the government, an EIN is free and easy to get.  Never pay for an EIN – don’t fall for scams offering to get it for you for a fee.  Just be sure to go to the official IRS EIN Assistant website at https://sa.www4.irs.gov/applyein/.  You’ll get your EIN immediately upon completion. 

But There Can Be a Catch…..

OK, now that you have your EIN, you are home free, right?  Well, not exactly.  There is a tricky part for some providers.

• If you are new to private practice, have not contracted with the health plan, and/or have never sent a superbill to the health plan before:  Yay!  You get to avoid the tricky part that can come with EINs.   Just give the health plan your EIN and never give them your SSN.   The plan may ask you to fill out an IRS W-9 Form to attest to your tax ID (more on that form later), but that’s fine – it is a common request, even from out-of-network providers, and you shouldn’t worry about complying so that the claim can be processed.  
• If you have been billing insurance plans with your SSN previously:  If you suddenly switch to billing under your EIN, your claims will likely be rejected, since the health plan doesn’t recognize your new tax ID (your EIN).  

How to Prevent Claim Rejections

If the health plan knows your SSN from previous submissions, you’ll need to complete a fresh IRS Form W-9 with your EIN. You can get this form here.  This form basically informs the health plan that you have a new tax ID number that you will be using from now on. 

Send the W-9 to each health plan that you work with, attaching official proof from the IRS of your new EIN, such as Form CP575 or a copy of the formal EIN confirmation letter.  

It’s sometimes hard to find out where and how to send the W-9, so you will need to contact the health plan’s designated provider contracting, credentialing, or network management team.  (I know, easier said than done).

When I made the transition, it took me several phone calls to each health plan I worked with, and several submissions of my W-9 via fax or email over several months before the plans finally updated my provider profile with my new tax ID.   During that time, the claims I submitted with my EIN were being rejected.   

So here’s my tip:  Keep submitting claims with your SSN until you get verification from the health plan that they have your EIN in their computer.  You can also try checking your online provider profile to see if your information has changed.

I know, it sounds like it was a pain in the neck.  And it was.  But I kept careful records of all my interactions with each health plan, noted reminders when to follow up, and finally got each plan switched to my EIN. 

Other Steps You’ll Need to Take

You’ll also need to update your practice management software and clearinghouses to reflect your new tax ID so claims match the new EIN.   

And don’t forget to update your CAQH / DataSpring profile with your new tax ID information.  You’ll need to upload your W-9 and add your EIN to your profile. 

The TakeAway 

If you are new to practice, getting an EIN now is a great idea so that you can avoid using your SSN in your practice.  And if you have been using your SSN, taking the steps to transition from your SSN to an EIN can sound daunting, but it is really an investment in your practice’s security.   The peace of mind that can come from protecting your personal identity may make the hassle feel worthwhile.